Global markets lower again after US new attack against China

United States has announced new tariffs on $200 billion in Chinese goods

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Nieves Amigo
Bolsamania | 11 jul, 2018 10:44
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European markets are sliding (Ibex: -0,9% 9.793 p) after a new trade war scalation between China and the United States. The answer from Donald Trump was expected following the Chinese response to the $34 billion tariffs that became official last Friday. Trump has fulfilled his threads and has announced new taxes on $200 billion in Chinese goods.

IBEX 35
11.551,600
  • -0,16%-18,50
  • Max: 11.617,50
  • Min: 11.515,60
  • Volume: -
  • MM 200 : 11.046,08
17:35 08/11/24

By listing potential tariffs on goods including steel, aluminum and cotton, the Trump administration is going after China´s electronics, metal products, auto industries and textiles.

“Should tariffs on this additional $200 billion come to effect import levies would hit close to half of China´s exports to the US as of 2017”, Danske Bank experts warn.

China has compromised to respond one by one to each of these actions, but still there has not been any concrete announcement about what Beijing will do after this las decision from the White House.

After the notification, Asian shares closed steeply down, with mainland China stock taking the worst hits as trade concerns returned to focus. Japan´s Nikkei declined 1.19 percent to close at 21932,21 as the Shanghai composite sank 1.78 percent to close at 2,777.20.

The answer from Donald Trump comes during the NATO summit in Brussels that will last till tomorrow. The US President has been calling for increased contributions from other members. Any disagreement or potential change in the structure of NATO should fuel a risk-off environment.

Following the recent frenzy in UK politics, speculation has been mounting that May-sceptic Tories may gather to call for a vote of confidence in her leadership, but a majority seems to be lacking. By now, both FTSE 100 and the pound stay calmed. In addition, European Brexit negotiator, Michael Barnier, has questioned May´s new Brexit plan but gained support from Angela Merkel. The German chancellor declared to be satisfied with a “solid step forward”.

Talking about macroeconomic data released today, Mario Draghi, Peter Praet and Marc Carney are making public appearances.

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